TOMY Company, Ltd. Fiscal Year 2012 Results...Fiscal Year 2012 Results (April 1, 2012 – March 31, 2013) May 17, 2013 TSE Securities Code: 7867 1 May 17, 2013 Toshiki Miura Managing

TOMY Company, Ltd.Fiscal Year 2012 Results

(April 1, 2012 – March 31, 2013)

May 17, 2013TSE Securities Code: 7867

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May 17, 2013

Toshiki Miura Managing Director

Chief Financial OfficerTOMY Company, Ltd.

FY 2012 Financial Highlights (April 1, 2012～March 31, 2013)

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FY2012 Consolidated Income statements

FY 2012 FY2011 Difference(Yr-to-Yr comparison)

Sales 1,790 1,872 -82

Operating income 25 101 -76

Operating profit margin 1.4% 5.4% -4.0%

EBITDA 100 168 -68

EBITDA Margin 5.6% 9.0% -3.4%

Ordinary income 26 98 -72

Net income -70 36 -106

¥100million

* All figures have been rounded down to the nearest ¥100million.* Amortization of goodwill and intangible assets associated with acquisition of TOMY International (hereafter "TI") :

FY2012 ¥2.6bn, FY2011 ¥2.2bn * EBITDA=operating income + depreciation + amortization of goodwill * US$ FX rate : FY2012 ¥83.10, FY2011 ¥79.08

■ http://www.takaratomy.co.jp/ir/highlight/highlights.html Financial results data from fiscal year ended March 31, 2008 may be downloaded in Excel format.

http://www.takaratomy.co.jp/ir/highlight/highlights.html

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101

25

-26

-32

-16

0 2000 4000 6000 8000 10000

今期

1 月

2 月

3 月

前期OP

Increase in SG&A

Gross margin decreased by aggravated cost of sales ratio

Gross margin decreasedby sales decline

FY2012 Analysis of change in operating income

¥100million

FY 2011 Results(April 1, 2011- March 31, 2012)




【Consolidated】

* All figures have been rounded down to the nearest ¥100million.



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FY2012 SG&A Breakdown

FY2012 vs. Sales FY2011 vs. Sales

Cost of Sales 1,238 69.2% 1,261 67.4%

SG&A (total) 526 29.4% 509 27.2%Personnel expense 189 10.6% 194 10.4%Advertising expense 96 5.4% 89 4.8%R&D expenses 27 1.5% 25 1.4%Distribution expenses 70 4.0% 63 3.4%Amortization of goodwill and intangible assets associated with acquisition of TI

26 1.5% 22 1.2%

¥100million




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FY2012 Net Sales by Region

Regions FY2012 FY2011 Difference(Yr-to-Yr comparison)

Japan 1,242 1,195 46North America,

Europe and Oceania 457 583 -126

Asia (excluding Japan) 74 71 3

Others 15 23 -8

Total 1,790 1,872 -82

Ratio of overseas sales 30.6% 36.2% -5.6%


¥100million



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FY2012 Consolidated Balance Sheets

Items FY2012 FY2011 Difference(Yr-to-Yr comparison)

Current Assets 862 869 -7Noncurrent Assets 665 696 -31

Total Assets 1,528 1,566 -38

Current Liabilities 393 352 41Noncurrent Liabilities 636 696 -60

Total Liabilities 1,030 1,048 -18Total Net Assets 497 518 -21

Shareholders’ Equity 477 494 -17Shareholders’ Equity Ratio 31.2% 31.6% -0.4%

Inventories 203 170 33

Cash and deposits 337 376 -39Total Interest Bearing Debt 662 688 -26

Loans Payable 530 544 -14Bonds and Convertible Bonds 132 143 -11

¥100million

* All figures have been rounded down to the nearest ¥100million.* US$ FX rate : FY2012 ¥94.05, FY2011 ¥82.19

■ http://www.takaratomy.co.jp/ir/highlight/highlights2.html Financial positions from fiscal year ended March 31, 2008 may be downloaded in Excel format.

http://www.takaratomy.co.jp/ir/highlight/highlights2.html

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FY2012 Extraordinary Loss Breakdown

Items Amount Detail

Extraordinary Loss

Impairment loss 62 Impairment losses of 5.8billion yen on certain intangible assets of TI , Mold, etc

Special extra retirement payments

8Severance pay related to call for voluntary retirement.

Business structure improvement expenses

4Business restructuring expenses due to integration of The TI Group.

Others 5

79* All figures have been rounded down to the nearest ¥100million.

¥100million



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TOMY GroupBusiness Plan

in next year (ending March 31, 2014)

May 17, 2013

Kantaro Tomiyama President & CEO

TOMY Company, Ltd.

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1. Declined productivity of domestic toy business(1) Continual decline of domestic toy sales(2) Rising of break-even-point in domestic toy business

2. Worsening situation for some toy peripheral businesses(1) Poor performance and significant fall into deficit by children’s apparel business

3. Turmoil and sluggishness in overseas business (1) Baby business of TOMY International performed poorly(2) Turmoil in European business integration caused significant sales decline(3) Anticipatory investments and worsened efficiency left China business unable to

depart from an unprofitable business structure

4. Decline in governance functions(1) Slowness of risk avoidance measures toward Group business risks(2) Profits were squeezed due to anticipatory-investment-type revenue structure

Reasons for poor performance in fiscal year under review (ended March 31, 2013)

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1. Establish stable revenue base with domestic business.

2. Focus investment resources to US and European markets and further enhance the globalization process.

3. Explore opportunities in growing Asian market and create foundation for future business.

Basic strategy of TOMY Group Revitalization Plan

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Based on the “Revitalization Plan” announced on March 25, 2013

Organizational structure for realizing “Revitalization Plan”◇ Execution and guaranty by Head Office executive officers

(1) Domestic business(2) Europe business(3) Asia business(4) Consolidated administration system(5) Consolidated management

Basic strategy and organizational structure for revitalization in next fiscal year (ending March 31, 2014)

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1. Structural reform for strengthening revenue base of domestic businessHead Office Toy Business Headquarter (person in charge: Mashimo) controls the overall operational execution of the domestic business

(1) Domestic Toy BusinessNet sales on par with previous year ⇒ Reduce break-even-point by 10%

* Optimization of personnel composition* Convert personnel cost to a variable cost by strengthening linkage to operating

performance* Thorough attention to KPI management

Conversion of anticipatory-investment-type advertising expenses to a variable cost

Achievement of spending efficiency by centralizing management to TOMY Marketing Company Ltd. (T2M)

* Achievement of efficiency for domestic logistic expenses * Effective allocation of sales promotion expenses for distribution


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1. Structural reforms for strengthening revenue base of domestic business

(2) Toy Peripheral BusinessPromotion of sharing of character strategies and maximization of efficiency and synergy under leadership from the Character Business Strategy

* Introduction of new sales channels(for adults, Internet mail-order, convenience stores)

* Demonstration of rapid interlocking capability for when acquiring immediately marketable characters

Rehabilitation of the apparel business * Transfer of character apparel business to T-ARTS Company, Ltd. and

demonstration of synergistic effect for broader range of age-group targets. * Thoroughly execute rehabilitative administration and realize sales growth under

direct headquarter management (person in charge: Kojima).


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2. Constructing growth scenarios by concentrated investment in US and EuropeHead Office Global Business Headquarter (person in charge: Yanagisawa) controls the overall operational execution of the global business

(1) US and Europe Toy BusinessRealization of growth strategy that positions global contents as the main axis by interlocking the corporate management of the Head Office Global Business Headquarter and TOMY International (TI). Implementation of distribution strategy for the stable growth of the established business of agricultural vehicles. Promotion of hot-selling product creation from Head Office planned products (e.g., Battroborg)

(2) US and Europe Baby BusinessImplementation of infant feeding business rehabilitation plan

* Reconstruction of distribution strategy * Execution of global sales strategy (Incorporating Asia and China Market)

Expansion of baby brand business* Sales expansion of growth brands “JJ Cole,” “Lamaze,” and “Boon”


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3. Creating Medium-Term Growth Scenarios Through Business Trials in AsiaGlobal Business Headquarter (person in charge: Yanagisawa) controls the overall operational execution of the global business

(1) Rehabilitation of the China BusinessCreation of retail spaces with highly efficient operationFull-scale introduction of TI baby merchandize Thoroughgoing management of business advancement by person in charge at Head Office

(2) Business trials in AsiaThoroughgoing policy to jointly work with distributors in existing markets (South Korea, Taiwan and Hong Kong) Commencement of business trials in ASEAN region (especially Indonesia)


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4. Constructing and Operating Efficient Global-Based Management SystemHead Office Corporate Administrations (person in charge: Kojima) controlsthe overall operational execution

(1) Global finance structureResponse to the strong US dollar, strong Euro, and weak yenFurther reorganization of the Group for corporate growth

(2) Construction of a global systemBusiness visualization support by construction of global system strategyGlobal item creation support by integrating global masters

(3) Global risk avoidanceStrengthening of global legal structure and construction of global insurance


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5. Strengthening Governance System and FunctionsReform of Board of Directors

Operation by Board of Directors that can guaranty the swift revitalization of the Group. Speedier and objective decision making process Judgment and execution of company business by executive officers with greater transparency

(1) Reduce the number of directors ( 13 directors [end of last year shareholder meeting]

⇒ 10 directors [end of current year shareholder meeting] )

(2) Strengthen transparency of process for business execution by executive officers (increase ratio of outside directors 38% ⇒ 50%)

Full-time director candidates 4 candidatesPart-time director candidates 6 candidates

Note: One candidate is the Representative Director & President of T2M, TOMY Group.


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5. Strengthening Governance System and Functions(3) Role of full-time directors and status of executive officers

Role and responsibilities of 4 full-time directors (candidates)* Kantaro Tomiyama : President and CEO * Osamu Mashimo : Chief Operating Officer (COO), Toy Business Headquarter * Shigeki Yanagisawaa : COO, Global Business Headquarter * Kazuhiko Kojima :CFO and COO, Corporate Administration

Role and responsibility of executive officers* Senior operational officers who support COO * COO of their appointed division


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Forecast for the year ending March 2014

Consolidated

FY2012 FY2013 Six months Fiscal year

Six months ending September 30,2012

Fiscal year ending March 31,2013

Six months ending September 30,2013

Fiscal year ending March 31,2014

Difference(Yr-to-Yr

comparison)

Difference(Yr-to-Yr

comparison)

Sales 835 1,790 880 1,830 45 40

Operating income 11 25 20 50 9 25

Ordinary income 8 26 17 44 9 18

Net income -2 -71 5 22 7 93

Regions FY2012 FY2013 Difference(Yr-to-Yr comparison)

Japan 1,242 1,160 -82North America,

Europe and Oceania 457 550 93

Asia (excluding Japan) 74 110 36Others 15 10 -5Total 1,790 1,830 40

Ratio of overseas sales 30.6% 37.2% 6.6%

¥100million

¥100million

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Major Product Topics Major Product Topics １１Battroborg 4Ｇ

Hoppe-Chan

The Long Standing Products

■ Tomica■ Plarail

■ Licca

ⓒ TOMY ⓒ TBS ⓒ 2013 SUNHOSEKI CO,.LTD.ALL Rights Reserved

• Wireless Motion-Activated Battling Robots

• Battroborg 20 has a good sale, 300,000 units+ in half year in Japan.

Japanese popular character among teenage girls.Game based on Japanese popular TV show.

Million Spoon

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Major Product Topics Major Product Topics ２２

Ⓒ 2013 Pokémon. Ⓒ 1995-2013 Nintendo/Creatures Inc./GAME FREAK Inc. TM,® and character names are trademarks of Nintendo.Ⓒ Deere & Company

ⓒ T-ARTS ⓒ T-ARTS / syn Sophia ⓒ T-ARTS / syn Sophia / テレビ東京 / PRR製作委員会

ⓒ NHN Japan Corporationⓒ 2013 Pokémon ⓒ 1995-2013 Nintendo/Creatures lnc./GMAE FREAK inc. Developed by T-ARTS and MAQLTOMY International

T-ARTSThe ultrasonic vibration makes

the creaminess of the head.

■Character apparel

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“TOMIX WORLD”

OPEN！

“Prism Stone Harajuku” OPEN！

TOMY GROUP TopicsTOMY GROUP Topics 11

“Pretty Rhythm” official store

opened in Harajuku Tokyo !!AprilApril

27th27th

AprilApril

2121thth

“TOMIX” showroom opened in

Ohmiya Saitama.

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Now making a movie with Young and talented actors!!

“Science Ninja Team Gatchaman”

24th August release

Tomica & Prarail movieis coming up soon!

TOMY GROUP TopicsTOMY GROUP Topics ２２

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This report contains forward-looking statements, targets, plans and strategies for the future. However, these are based on current information and will not guarantee nor warrant any financial estimates or any figures. Therefore, actual results could differ from this report. This is translation on original text in Japanese.

Documents

TOMY Company, Ltd. Fiscal Year 2012 Results...Fiscal Year 2012 Results (April 1, 2012 – March 31, 2013) May 17, 2013 TSE Securities Code: 7867 1 May 17, 2013 Toshiki Miura Managing